Uncertainty to Continue
The Oakland Metropolitan area’s office vacancy rate increased 110 basis points from 14.4 percent to 15.5 percent in the third quarter of 2022 and continues to be heavily impacted by the pandemic and drop in office use. Net absorption was negative 213,131 square feet for the third quarter and negative 601,050 square feet year-to-date for 2022. The combined average asking rate across all classes of office space decreased by $0.05 per square foot to $4.45 per square foot per month full service (FS). A steady but slow increase in return-to-office figures and improving transit data going into Downtown Oakland are potential signs of optimism. That said, there are market headwinds in increasing interest rates and equity market volatility.
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